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Contract Management Software in the Quote-to-Cash Cycle: Find the Lost Money
New Aberdeen report finds that, on average, 9% of revenue is leaked away in the Quote-to-Cash process
BOSTON, MA – Contracts are a dynamic representation of an enterprise’s relationship with its customers. According to the 189 participants of a new Aberdeen study, the percentage of an enterprise’s revenue that is dictated by a contract is likely to rise from 56% to 68% on average over the next two years. The trend is clearly towards more contractually-based relationships. As such, it will become more and more essential for enterprises to have data such as that within any sales contract at their fingertips; all of which can be used for historical analysis, forecasting, risk assessment and analysis and revenue recognition.
Currently, there are some challenges with this, as the majority of enterprises voiced their concerns over the disconnect between the various processes on the sell-side, including pricing, proposal creation, negotiation, contract management as well as order management and invoicing.
What is the impact of these and other challenges?
Respondents reported that, on average, their enterprises lose 9% of their revenues due to regulatory penalties, missed deadlines, lost sales, “maverick” pricing and transactional errors. This stark view of billions of dollars in lost revenue demands immediate attention from the highest levels within the enterprise.
Additionally, due to non-standard language (and processes) we found that, on average, 18% of an enterprise’s sales cycle is attributed to contract creation, negotiation and approval. Furthermore, a one day reduction in the sales cycle is worth on average $80,000, and of course this varies by company and industry, and in some cases, the number exceeds $250,000.
Contract management also has an impact on Days Sales Outstanding (DSO). In fact, Best in Class enterprises have shown a reduction in this key metric by approximately 20% due to improved contract management.
To learn more on the topic and benchmark your enterprise’s performance, download a complimentary copy of this report, which is made available due to: Selectica, Imany, Upside Software, Ecteon and Contract Logix, Inc..
Download a complimentary copy of Contract Management: The Quote-to-Cash Cycle – Click Here
About Contract Logix, Inc.
Contract Logix, Inc. was founded in 1997 with a mission to streamline fundamental business operations such as contract and risk management. Contract Logix provides affordable and easy-to-use software, professional services, and managed solutions to its host of business customers. Contract Logix ’s range of software and services serve the needs of businesses across a wide variety of industries and job functions.
The initial focus of Contract Logix was the development of software facilitating medical credentialing, provider management, quality data management, and application completion within the healthcare industry. Contract Logix has established an outstanding reputation for customer service and quality and upholds the highest level of standards. Customer satisfaction is crucial to Contract Logix and remains a top priority allowing Contract Logix to deliver intelligent software solutions that meet and exceed customer expectations.
About AberdeenGroup, Inc.
AberdeenGroup, Inc. provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen’s benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives and the solution providers who serve them. ###
Press Contacts
Contract Logix, Inc.
Timothy Donaghy
(866) 371-4445 ext. 19
tdonaghy@contractlogix.com AberdeenGroup
Vishal Patel
(617) 854-5245
vishal.patel@aberdeen.com
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